A new species of Periclimenaeus is described from Madeira Island, in the northeastern Atlantic Ocean. It is closest to P. pearsei Holthuis, 1951 from the western Atlantic, but it can be distinguished by the shape of rostrum, the size of exopod in relation to endopod in third maxilliped, the relation between the carpus and the chela of pereiopod 1, the relative size of second pereiopod minor chela, and the number of setae on appendix masculina. This is the first record of the genus Periclimenaeus in the eastern Atlantic.